Our main result is a new sequential method for the design of decentralized control systems. Controller synthesis is conducted on a loop-by-loop basis, and at each step the designer obtains an explicit characterization of the classCofallcompensators for the loop being closed that results in closed-loop system poles being in a specified closed regionDof the s-plane, instead of merely stabilizing the closed-loop system. Since one of the primary goals of control system design is to satisfy basic performance requirements that are often directly related to closed-loop pole location (bandwidth, percentage overshoot, rise time, settling time), this approach immediately allows the designer to focus on other concerns such as robustness and sensitivity. By considering only compensators from classCand seeking the optimum member of that set with respect to sensitivity or robustness, the designer has a clearly-defined limited optimization problem to solve without concern for loss of performance. A solution to the decentralized tracking problem is also provided. This design approach has the attractive features of expandability, the use of only ‘local models’ for controller synthesis, and fault tolerance with respect to certain types of failure.